Question

Cost of Production Report: No Beginning Inventories
Howell Paving Company manufactures asphalt paving materials for highway construction through a one-step process in which all materials are added at the beginning of the process. During April 2017, the company accumulated the following data in its process costing system:

Production data
Work-in-process, 4/1/17		0 tons
Raw materials transferred to processing		25,000 tons
Work-in-process, 4/30/17 (75% converted)		5,000 tons
Cost data
Raw materials transferred to processing		$487,500
Conversion costs
Direct labor cost incurred		$35,625
Manufacturing overhead applied		?

Manufacturing overhead is applied at the rate of $6 per equivalent unit (ton) processed.
  

Prepare a cost of production report for April.

Howell Paving Company
Cost of Production Report
For the Month Ending April 30, 2017
Equivalent units in process:	Materials	Conversion	Total
Units completed
Plus equivalent units in ending inventory
Equivalent units in process
Total cost to accounted for and cost per
equivalent unit in process:
Beginning work-in-process
Current costs
Total cost in process
Equivalent units in process
Cost per equivalent unit in process
Accounting for total costs:
Transferred out
Ending work-in-process:
Materials
Conversion
Total cost accounted for

Answer 1

Solution Howell paving company Cost of production Report particulars Matereal Conversion Total 20000 20000 unit completed Add: Equivalent units in ending Inventory 5ood 3750 Equivalent units in process 25000 23750 Total cost to accounted and cost per equivalent unite in process Beginning wir current cost 487500 178125 665625 Total cost in process 487500 178125 665625 Cost for equivalent unit in process 19.5 7.5 27

Amount 540000 Accounting for Total costs Transfered out Ending WIP Materiat C 5000 x 19.5) Conversion ( 3750 x 7.6) Total cost accounted for 97500 28125 125625 665625 Manufactwing overhead applied = [ 23750 x 6 + 35625] - 178125